Egyptian pound lost almost 50% after adoption of floating exchange rate

Egyptian pound lost almost 50% after releasing the currency on the free trading markets. Egyptian pound sharply depreciated today, losing almost half from its value, as yesterday the government introduced floating exchange rate, attempting to stabilize the economy and monetary policy. The Egyptian Central Bank adopted the floating exchange rate on the recommendation of International Monetary Fund (IMF), opening access to giant rescue package, which is in urgent need of the North African country.

“The regime of floating exchange rate will improve the competitiveness of Egypt and will support the export, tourism and attracting of direct private investments”, said the economists from IMF. “This will encourage the economy growth, creation of new jobs and stronger foreign position of the country”, added the economists.

The Egyptian Central Bank explained that introduction of finance reform was taken in attempt to suppress any problems on the local currency market and to stimulate the dynamics in market trading.

The Egyptian pound is traded at rate of 12 EGP per 1 USD, while the rate in Wednesday was 8.8 EGP per 1 USD.